Government-published audit results found that a majority of External Wall Insulation (EWI) installations and a large minority of Internal Wall Insulation (IWI) installations carried out under the Energy Company Obligation (ECO4) and the Great British Insulation Scheme (GBIS) had at least one major technical non-compliance. The results showed that 92% of EWI installations and 27% of IWI installations under these schemes were found to have at least one major technical non-compliance1. The report was published in January 20261.
Both schemes are now closed or closing to new work. GBIS, formerly known as ECO+, is closed to applications and was not extended beyond March 20261. The government decided to stop further funding of ECO4 through consumers' energy bills after March 2026, and major suppliers are either no longer advertising ECO4 or accepting applications1. ECO4 has since been extended and will now run until 31 December 2026, to meet existing targets and remediate non-compliant installations1.
The audit sits within a wider set of installation standards issues. The Commons Library briefing covering the results also addresses installation standards under UK Government schemes, specific insulation problems under ECO4 and GBIS, and problems with earlier schemes including the Green Homes Grant, the Home Upgrade Grant (closed March 2025) and Green Deal installations1. On oversight, the government has said:
"We will consult this year on options for bringing the oversight of energy efficiency and microgeneration installations for government schemes under closer government control and on the role of the Warm Homes Agency."
The briefing sets out the current support landscape for households. The Warm Homes Plan was published on 21 January 20261. Low-income consumers will benefit from over £5 billion of investment in home upgrades by 2030, comprising over £4.4 billion grant funding plus £600 million from the Warm Homes Fund targeted at low-income households1. The Warm Homes Fund will have a total of £5 billion in financial transactions to deploy, including £1.7 billion already allocated to low- and zero-interest consumer loans supported by £300 million of capital investment, plus £0.6 billion of low-income funding; the residual £2.7 billion will be available as innovative finance for investments in and loans to the home upgrade sector1. Details of the consumer loans offer are not yet available1.
| Measure | Installations with at least one major technical non-compliance |
|---|---|
| External Wall Insulation (EWI) | 92% |
| Internal Wall Insulation (IWI) | 27% |
Why it matters for households
Wall insulation is one of the measures most directly tied to a home's energy independence: it reduces the heat a property loses, so less energy is needed to keep it warm. The audit results mean that a household whose walls were insulated under ECO4 or GBIS cannot assume the work was done to standard. A major technical non-compliance may affect how well the insulation performs, and in some cases how the building manages moisture. The briefing covers how to rectify associated problems for existing recipients of ECO4 and GBIS, alongside other now-closed schemes1.
The schemes that funded this work are ending or have ended. GBIS is closed to applications1. ECO4 funding through consumer energy bills stops after March 2026, though the scheme itself runs to 31 December 2026 to meet existing targets and remediate non-compliant installations1. For households considering insulation now, the funding route has shifted toward the Warm Homes Plan schemes, including the Warm Homes: Local Grant and the Warm Homes: Social Housing Fund, which are to be merged into a single low-income capital scheme from 2027/281. The ECO4 and GBIS routes that produced these installations are no longer open in the same form.
What happens next
The government has said it will consult this year on bringing oversight of energy efficiency and microgeneration installations for government schemes under closer government control, and on the role of the Warm Homes Agency1. The Warm Homes Agency will begin "initial operations" in 20271. Salix, an existing non-departmental public body, will close, with its functions alongside some from the Department for Energy Security and Net Zero and relevant roles in Ofgem brought together into a single executive agency1. The agency is intended to "support the delivery of the Warm Homes Plan, and guide consumers through the transition"1. Further detail on the consumer loan offer has not been reported1.
Sources1 cited
- [](https://researchbriefings.files.parliament.uk/documents/CBP-9585/CBP-9585.pdf), researchbriefings.files.parliament.uk